How relevant really is blockchain in this application?

We believe the fundamentals of blockchain technology will play a key part in managing and reducing global carbon emissions. Blockchain technology provides an accountability platform for every organization globally (such as manufacturers, distributors, amongst others), to collaborate with a higher level of transparency. Each partner on the blockchain network will be able to report carbon emissions throughout their own value chains using defined metrics, giving rise to an integrated platform for carbon monitoring. Blockchain technology provides a consistent and approved algorithm to keep track of carbon emissions, resulting in broader and more fervent support for environmental efforts across the board.

The four key architectural components of blockchain technology that will improve accuracy and credibility when calculating carbon emissions

1. Transparency: blockchain technology is essentially defined as a system for recording information in a way that makes it difficult/impossible to change or hack. It is known as a “digital ledger of transactions” that is distributed across a network of computer systems (nodes) that exist on the given blockchain. We think of it as a sort of decentralised digital “library”; whereby previously centralised decision-making (such as from an organisation, government or other entity) is transferred and distributed across the network, leading to greater transparency. In our use case, our solution will provide greater visibility across the carbon trading market, an industry at high-risk of error-ridden data (partly because of the lack of standardization or consensus).
2. Accuracy: our algorithms and rigorous cryptography will mean that transactions on the blockchain network are highly accurate and homogenous. Since multiple nodes on the network are compared in real-time, an inaccurate or unverified entry will be flagged promptly, immediately removing inaccuracies across the network. We are making the process of trading carbon tokens highly accurate and leading international standards within the system.
3. Speed: accessing records on the blockchain is much faster and more efficient compared with traditional methods. As well as the network working in a streamline process as detailed above, companies, individuals and other stakeholders will also be able to access detailed, accurate and full records of transactions in record time. We believe this will increase engagement and participation in carbon credits on a global scale, within small and large organisations.
4. Trust: blockchain technology enables high traceability. When a user performs any activity on the blockchain, the network will go through a rigorous security process (through cryptographic and algorithmic technologies), updating the entire network in the process and ensuring the validity of the transaction. The current carbon market is highly heterogeneous and disperse, lowering trust and standards in the industry. Without trust, there exists no real accountability, and therefore a question mark on the real-world impact of carbon offsetting activity.

We believe that tokenization and decentralization in the carbon markets are key in overcoming existing structural deficiencies and the fundamental lack of transparency in the industry as a whole. Moreover, we believe bridging blockchain with sustainability will alleviate some of the fear, uncertainty and doubt that has plagued the industry over the past few years, with many comments in media highlighting the negative environmental impact of protocols such as Bitcoin and other proof-of-work systems.

2. The Environment